What is a South Carolina resale certificate, and how do you use one?

What is a South Carolina resale certificate?

A South Carolina resale certificate, in the context of community associations, is a document that provides key information about a property and its association at the time of sale. In many planned communities, condominiums, or homeowners associations (HOAs), this certificate is provided before closing. It helps buyers understand what they are purchasing beyond the four walls of the home, including financial obligations and community rules.

In South Carolina, the content of a resale certificate can vary depending on the community's governing documents and any applicable local laws. The certificate typically includes information about fees, assessments, bylaws, restrictions, association insurance coverage, and any current violations or outstanding balances. Providing a South Carolina resale certificate can help protect both buyers and sellers. Buyers gain a clearer picture of what they’re responsible for, while sellers fulfill their disclosure obligations to help avoid post-sale disputes.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

What’s included in a South Carolina resale certificate?

A typical South Carolina resale certificate includes details about the association and the specific unit being sold. While each association may include slightly different information, most certificates will contain:

• Current assessment amounts and payment schedules
   
• Any unpaid fees or fines owed by the unit owner
   
• Pending special assessments or known capital projects
   
• Legal actions involving the association
   
• Governing documents such as bylaws or declarations
   
• Insurance coverage details for common elements
   
• Reserve fund details

Some communities may also include other items, such as recent meeting minutes or pending policy changes. These documents help provide a complete picture of the financial health and operational structure of the community, which is essential for buyers making long-term homeownership decisions.
 

How do you get a resale certificate in South Carolina?

To get a South Carolina resale certificate, the seller or their agent typically contacts the homeowners or condominium association (or the property management company of the association) to request the necessary documents. In some cases, the request may need to be made in writing or submitted through a specific online portal used by the management company. The resale certificate is generally prepared by the association manager or designated board member. Depending on the community, it may take several business days to prepare, and there may be a fee for processing and delivery. That fee is usually charged to the seller but could be negotiated as part of the purchase agreement.
 

How do you use a resale certificate?

A South Carolina resale certificate is used during the closing process to help answer questions you might have. Along with your real estate agent or attorney, you can use the resale certificate to review the financial, legal, and operational details of the property’s association.

Here are a few examples of questions these documents might help you answer before finalizing the purchase:

• Are there unpaid assessments or violations tied to the property?
   
• What monthly or annual fees will I owe?
   
• Are there any upcoming capital projects or special assessments?
   
• What are the rules and restrictions I’ll be expected to follow?

In many cases, the resale certificate is reviewed by the buyer’s attorney or closing agent and becomes part of the documentation provided to the lender. It can also influence the buyer’s willingness to move forward, especially if the certificate reveals red flags like high delinquency rates or litigation involving the association.
 

Do you need a resale certificate if the community is self-managed?

Yes, even in self-managed communities, a resale certificate might be required. In this case, the board of directors (or a designated board member) will typically prepare the documents manually or using a template. Buyers may still be entitled to the same information about fees, rules, and the association’s financial status, regardless of whether the association has a professional management company. Because self-managed associations may not have systems in place for quick document turnaround, it's important to build extra time into the closing process to accommodate the resale certificate request.
 

How much does a South Carolina resale certificate cost?

The cost of a South Carolina resale certificate varies depending on the association or management company. Fees can range from $100 to $500 or more, depending on how many documents need to be gathered and whether rush processing is required. These fees typically cover the time spent preparing the statement of account, gathering governing documents, and compiling financial records or legal disclosures. Some associations offer electronic delivery for convenience, while others may provide physical copies by mail.
 

What if there’s a mistake in the resale certificate?

If you discover an error in the South Carolina resale certificate, it’s important to notify the association or management company immediately. Errors might include outdated fee amounts, incorrect balances, or missing disclosures. The seller or their agent should work with the preparer to issue a corrected certificate as soon as possible. Because the resale certificate is used to make legal and financial decisions, accuracy matters. Buyers should thoroughly review all included documents with their real estate agent or attorney, especially if the certificate raises questions about assessments, violations, or future costs. In some cases, a buyer may have the right to cancel the contract if the resale certificate is not delivered within a required timeframe or if the information reveals material issues.
 

How FirstService Residential supports board members in South Carolina

If your board is fielding resale certificate requests or preparing for increased sales activity, having a clear and consistent process matters. Accurate, timely resale certificates help protect the association, set realistic expectations for buyers, and support a smoother transition for all parties involved. If your board could use support managing these requests or organizing resale disclosures, a professional management company like FirstService Residential can help lighten the load. Contact a member of our team today to learn more.